Treasury Bill Rates Rise: The Treasury sold...

Treasury Bill Rates Rise: The Treasury sold $7.62 billion of new three-month bills at an average discount rate of 5.69%, up from 5.57% last week. Another $7.62 billion of new six-month bills was sold at an average discount rate of 5.79%, up from 5.67% last week. The new discount rates understate the actual return to investors--5.87% for three-month bills, with a $10,000 bill selling for $9,856.20, and 6.06% for a six-month bill selling for $9,707.30. The discount rate reflects the price discount received when government securities are apurchased at less than face value.